State: Controversy isn't commission's first

TALLAHASSEE -- Three years ago, then-state Sen. George Kirkpatrick helped pass legislation that gave private companies contracts with Florida's training program for disabled workers.

Four months ago, his foundation landed a $1-million contract to train workers under the program. The decision to give Kirkpatrick the contract -- a vote the Occupational Access and Opportunity Commission affirmed a month after his July appointment to that board -- sparked an outcry and a state investigation.

But it is not the first time questions of conflict or competency have surrounded the commission. Two members have faced allegations of conflict of interest and cronyism in connection with other contracts. A third resigned his private post, with a charity that had contracts with the state, over questions of financial mismanagement.

State auditors want lawmakers to abolish the commission, and other state investigations are ongoing, prompting one former member to call the commission a "personal money tree" for some members. The federal government has declared Florida's vocational rehabilitation program "high risk," which jeopardizes some $100-million in federal funds.

"The whole thing is set up to line the pockets of people like George Kirkpatrick," said Bill Weber, an advocate for the disabled who has trained workers for the state.

Under board rules, commissioners can bid on contracts as long as they formally declare a conflict of interest. They have declared at least 15 conflicts in the agency's 21/2-year history.

That's one reason former commissioner Steve Howells resigned.

"This was driven by individuals who wanted a larger piece of the pie," Howells said.

Although some board members had good intentions, Howells said, others tried to use it as a "money tree" for themselves.

Kirkpatrick, who said he receives no pay from the foundation he represents, and other commissioners deny any wrongdoing. Commission members say putting providers of disabled education on the board gives the commission a sense of what disabled workers need. And they point to a report that, while it notes the commission's problems, signs off on the privatization concept.

"I think there are pretty good safeguards" against conflict of interest, said commission chairman Dennis Celorie. "Providers do understand what the needs are of people with disabilities."

Florida already has accelerated plans to expand Kirkpatrick's pilot privatization program to other parts of the state. By early next year, the state wants another seven of the 24 regions under the control of private companies.

Nonetheless, the coziness of some of the commission's contracts and business relationships has caught the attention of state investigators.

The Department of Education, which oversees the commission and the Division of Vocational Rehabilitation, investigated accusations that commissioner Pat Hardman pushed staff to circumvent the bidding process and award contracts to favored vendors. Investigators found "the appearance of favoritism and preferential treatment afforded to select organizations," including a company with which Hardman's private firm had done business.

Former board member Bill Sandonato resigned after his private company sought $5.3-million in state contracts and was awarded about $120,000 worth of work. Although he abstained from the board vote on the contract, state officials told him the deal had the appearance of a conflict, according to state investigators. Sandonato later turned over the contract to the for-profit giant Lockheed Martin when his company merged with it. Sandonato stayed on as an employee with Lockheed.

Current board chairman Celorie hasn't faced state investigators. But he was forced to resign from his job at the Sarasota Easter Seals group, which had done training for the state. Easter Seals board members said he drove the group into debt, according to published reports. He remains on the state commission.

Department of Education spokeswoman JoAnn Carrin confirmed that other investigations are pending but declined to discuss details.

The state's vocational rehab program is a partnership with the federal Rehabilitation Services Administration in which the federal government pays $4 for every $1 the state pays. Under the old program, state workers counseled disabled workers on their options for training, including training provided by private companies. Under the privatization pilot program, private companies can provide the counseling and the training services.

Weber has joined forces with another state contractor, John Ficca, to get lawmakers to take a new look at the program. Both men say they have nothing to lose under privatization; if anything, they might gain financially. But they say they have a problem with how it is run.

Weber and Ficca say private companies that counsel disabled workers on their vocational training options have a conflict when they also provide that training. The workers might never hear about other options better suited to getting them back to work, the men said.

"Vocational rehab is the last stop before the soup line," Weber said.

The privatization effort has caught the eye of the federal government, which has classified the state as a "high-risk" receiver of federal grants. The federal government reaffirmed that classification last month and continues to closely monitor the state.

But commission members say much of the blame for the state's problems fall to state workers who have been unwilling to move ahead with privatization for fear of losing their jobs.

Hardman, for example, said the investigation into her involvement with the bidding process was prompted by complaints from state workers who didn't like her private-sector style of talking directly to potential contractors instead of going through staff.

"Nothing was going on -- that was just their (staff's) impression," Hardman said. "The private sector acts so differently."

Sandonato said he already was training disabled workers for the state when lawmakers voted to privatize more of the program. He said he doesn't recall anyone from the state telling him he would have a conflict if his company won a contract from the new commission while he sat on it. But Sandonato said it was always his intent to resign if he got the contract.

Having people whose companies provide training for the disabled sit on the commission is no different from other commissions across that state that have interested parties on them, he said.

"The fact that I am known to these folks does provide me some access but I don't think it provides me with unfair access," Sandonato said.

Back to State news

Contact the Times | Privacy Policy
Standard of Accuracy | Terms, Conditions & Copyright

Special Links

Lucy Morgan

From the Times state desk